Telecoms stocks continued to dominate activity across European markets as Vodafone AirTouch's improved, but hostile, bid for Germany's Mannesmann heightened interest in the sector. In Germany, Mannesmann fell steeply after the formal offer from Vodafone emerged as an all paper bid.
Mannesmann fell €14.40 or 6.9 per cent at €193.10, against Tuesday's record high of €217.50. Deutsche Telekom stayed firm, adding €2.20 at €55.30.
The FTSE Eurobloc 100 index dipped 4.09 to 1,207.85 while the FTSE Eurotop 100 lost 12.44 to 3,307.52. The FTSE Eurotop 300 index fell 8.48 to 1,421.27.
France Telecom was the biggest percentage gainer on the CAC40, rising €6.30 to a closing high of €111.90. The company benefited from talk that it would be the most likely buyer of Britain's Orange if Vodafone's bid for Mannesmann was successful. Antitrust considerations would require Vodafone to sell the British mobile group. Frankfurt finished 5.92 better at 5,955.97 on the Xetra DAX index for a 2.8 per cent gain for the week.
An upbeat trading statement from Lufthansa prompted Merrill Lynch to upgrade the airline from "accumulate" to "buy". The stock jumped €1.40 to €21.40.
Amsterdam ended little changed in spite of a number of storming performances in the media sector. The AEX index shed 0.45 at 607.18.
Wolters Kluwer drove up 9.9 per cent in active trading as investors picked out media shares for buying attention.
The stock rose €3.16 to €35.02 amid options-related buying, talk of demand by tracker funds and a revival of an old story that the publisher was set to forge sector links. Elsevier added 25 cents at €9.39 while VNU rose €1.76 at €37.31.
Chemicals group DSM added €1.84 at €42.53 for a two-day gain of more than 9 per cent.
Paris continued higher, registering another record close as the CAC40 index edged up 16.90 to 5,263.23. Recent underperformer Saint Gobain jumped €9 to €166.50 as it sought to catch up with recent gains.
Credit Lyonnais rose 77 cents to €30.45, as the market welcomed better-than-expected nine-month results.
Zurich edged lower and the SMI index finished 35.2 easier at 7,367.4.
